TEHRAN -- Oil Minister Bijan Namdar Zangeneh here Saturday predicted a sharp fall in oil prices on the international oil markets but said the Iranian government has adopted necessary mechanisms to face possible repercussions.

Zangeneh blamed policies adopted by military rulers in Iraq on oil supply as well as global market conditions for the oil price not exceeding $25 dollars per barrel, saying the U.S. presence in Iraq will have a long-term impact on the market.

"Iraqi military ruler Jay Garner's policy on supply of seven million barrels of oil would strongly affect the oil market, leading to price falls," said Zangeneh, adding that oil price would not exceed more than $25 a barrel this year, reported IRNA.